SUBJECT: STRATEGY AND CULTURE OF THE WALT DISNEY COMPANY
BY: SARAH PETER
For more than eight decades, the name Walt Disney has been paramount in the industry of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the world. Originally known as the Disney Brothers Cartoon Studio, with Walt Disney and his brother Roy as equal partners, the company soon changed its name, to the Walt Disney Studio, at Roy's suggestion. Young arrived in California in the summer of 1923 with dreams and determination. He had made a short film in Kansas City about a little girl in a cartoon world, called Alice's Wonderland, and he planned to use it as his "pilot" film to sell a series of these Alice Comedies to a distributor. On October 16, 1923, a New York distributor, M. J. Winkler, contracted to release the Alice Comedies, and this date became the formal beginning of The Walt Disney Company.
Section 1: External Environment
(a)The examples of factors that have effected the way it has behaved are as follows. Social: The Walt Disney Company fostered the spirit of creativity, innovation and excellence that continues to underlie all of the company’s success. It believes that quality entertainment is for all members of the family across America and around the world. It gives a chance for the whole family to sit together and have a good time. Technological: Silent cartoons were produced in as early as 1927. He introduced the first film with synchronized sound – The Jazz Singer. This was a huge success and later implied on Mickey Mouse, Silly Symphonies, Steamboat Willie, etc. Mickey Mouse became an immediate sensation instantly. In partnership with Pixar Animation, the company released the first computer-animated feature film, Toy Story. This was followed by a series of highly successful Disney/Pixar collaborations, A bug's life, Toy Story 2, Monsters, Inc., Finding Nemo and The Incredibles. Economic: These movies were released in the theaters and people enjoyed watching them with their kids at a normal rate. These movies were not charged any differently than the Hollywood Classics. Political: During the war, Walt Disney made two films about South America, Saludos Amigos and The Three Caballeros, at the request of the State Department. The studio also concentrated on producing propaganda and training films for the military. When the war ended, it was difficult for the Disney Studio to regain its pre-war footing. With the advent of World War II, the company lost access to most of its foreign markets. The studio was also at some financial risk. Legal Factors: Within a year of its existence, Walt made 26 Oswald cartoons, but when he tried to get some additional money from Winkler for a second year of the cartoons, he found out that the distributor had gone behind his back and signed up almost all of his animators, hoping to make the Oswald cartoons in his own studio for less money without Walt. Since the distributor owned the rights to Oswald, there was nothing Walt could do. It was a painful lesson for the young cartoon producer. From then on, he learned that he owned everything he made. Later Walt with his chief animator Ub Iwerks, designed a mouse whom his wife named Mickey, and a star was born.
(b)The relationship between the Walt Disney Company and the environment according to SWOT analysis is as follows: The Walt Disney Company’s Strengths
1.The Walt Disney Company is the second largest media and Entertainment Corporation in the world, after Time Warner, according to Forbes. 2.Diversified Entertainment Company.
3.It owns media networks as well as parks and resorts.
4.It makes movies and markets consumer products.